House Cleaning – The Low Investment Fallacy

You can buy books that tell you what a low investment, high-growth opportunity for residential housing can be. We believe that the house that clears 50% of the annual failure rate speaks for itself. It's an attractive industry, but it's an opportunity for an unlimited scale and profit from clearing a good home, not a misconception of low investment, which makes it attractive. Certainly, the industry needs to keep small investments compared to many specialty stores, restaurants or manufacturing industries, and it's a great measure, but it is up to experts to look forward to high growth and profits based on operating models for mobile and bucket work.

We are not saying that entry into our industry requires investment. Indeed, for those who clean themselves, or employ only one or two others to clean with them, you can enter the industry with just a hundred bucks, and we have nothing against anyone else who takes such an approach. It is just that we do not think that the growth or profit for such efforts is interesting. We believe that (in addition to identifying the price development of the industry), such employers are actually just buying a warehouse, work they get tired of before their business finds something quite adequate to become financially interesting.

Think of such a company that equals Alice, the Girl, of Brady Bunch fame. I can imagine Brady has paid her, not as an architect mind you but neglect, pretty well. Even so, was she really in business, or was she just working as a maid? What if she had bought her phone and strolled around the neighborhood at her lunch and tried to set herself for herself and her sister for Saturday – that it was a company? We like Alice just okay. It's just that we do not think of her as having been in business and, even when she worked for Brady, considering her talents to measure, we did not see a terrible threat to her as a competitor. If you want to get into a business for the cost of a bucket and start out by cleaning you, imagine yourself being Alice. If you are as committed and qualified as Alice, you have no further hopes of growth and profit and will be happy with your salary, insurance and retirement, then your success will be good for you (as long as you find a family as good as Brady) .

I'm not trying to get rid of you, but we do not want everyone to just turn into the industry with your eyes closed and mess up the place. We are protesting much of the material sold today – that the plot through some miracles is formed in homerun, at the service center. We already have enough companies in our industry to ban our brain. If someone wants to start another maid, bring them their money and swing for the fence. To start a truly flexible service company from scratch, expect to spend $ 50,000 (pay zero) for the first 12 to 18 months. At that time, with some abilities and healthy doses of luck, you have probably overcome operating conditions (not a full refund of your investment), built up 100-120 supermarkets, great pay customers and assembled soldiers 8 to 10 unusual, well-paid, well trained, ensures employees. The foundation has been established and traffic two can begin.

It is certainly possible to do much cheaper over a longer period of time, but in reality it decreases what value you put in your own time. For Hanna and I, we were both Investment Bankers before we started this project. So we were not really ready to go slowly for three to five years and we paid ourselves a pittance cleaning home automatically, anytime, while we were waiting for the company to grow. I know that some people think that you should do some of the cleanup yourself when you first start, but we never return to being filled in, although opportunities were almost daily. It was not a matter of not wanting our hands dirty, just our hands were already full, controlling the monster. Given that we have the opportunity to do that, we could have avoided some mistakes we made and could have spent less than we did, but basically, we do not want to take any less offensive approach to growth or quality of service.

If we had to do it again, as the first step, we would try to find and buy unprofitable service offices – one with at least good prices, half a dozen employees and about 50 to 100 customers who combine the best they could be in several beautiful neighborhoods. The only problem with such an approach is that you must be opportunistic about it, or you will overcome it too much. Before we started the Denver Concierge, we were looking for and really found one such company, but hopefully we refused to pay $ 100k that was requested (the price should have been only $ 30K). We had not learned for such a company, the involvement of a retailer in itself, which makes trading at all reasonable prices unacceptable.

We were in great rush, but instead we decided to start a business from scratch. In reverse, we might just spend the first of the summer looking for the perfect outlook, finding the perfect place to rent, organize an office, pricing suppliers, plan insurance, prepping vehicles and develop simple systems for training, business, accounting, payroll and scheduling. We could offer ten companies around to clear our house, develop marketplace, scoped out a competition prize and office space. We could have done all of it for additional costs of some rent and tax-free clean houses and we would have been better prepared when we finally got a chance to get cared for reasonably priced. At that time, however, we did not know that cleaning companies, like falling leaves, are enough. . . if you only wait in the fall. Even we would have understood, it would not have been waiting for us; We do not like the idea of ​​approaching nothing for the late summer. Of course, it seems absurd now, because we do not have to pay anything for the first two years anyway.

I do not want to forget I'm sure if you decide to start a venture from scratch, there are zero and zero customers and if you're going to offer outstanding service from the outside, we should support Prevent increased payback during the start-up period to train and take full-time work while trying to reconcile enough housekeeping exchanges to keep them occupied. Others may suggest that you put them part-time for the first time. We believe that such an approach will set you back from the start because your employees will run to look for better job opportunities during the holidays. Instead of classifying your employees, they will arrange themselves and you will soon be stuck with Duds. An excessive range of employees is early in the middle, and in our industry, middle utilization always ends up badly.

I remember the sixth day of our business, when we got our first customers and bought three enthusiastic, smiling, well-trained and equipped cleaners (two of three jobs here). After that, our latest call was called by glowing reviews and signed every two weeks. Well done. . . Now there were only nine days of blanks for our next scheduled task! They were days.

Source by Chris Lude

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